Brendan Howlin (Wexford, Labour) | Oireachtas source

I welcome the Taoiseach's acknowledgement of the vulnerability of our tax base but all of his actions and all of the kites being flown in recent times undermine that. The Taoiseach spoke about sustainable house prices. There are no sustainable house prices. In many parts of the country, house prices are back to the unaffordable level we had during the boom. The issue is that people's incomes have not recovered, such that they are worse off in terms of affordability.

What is demonstrable now is the priority for our economy must be to invest in quality public services. This is what all of the people want. The Government proposes to give a marginal tax break to 19% of taxpayers. There will be no benefit for 81% of taxpayers. A marginal tax break for 19% of taxpayers is not a tax break for "the middle". I am sure that if asked directly, that 19% of taxpayers would prefer to have that money invested in health and education.

I ask for that to be the priority as the Government approaches the budget, rather than falling into the notion that everything can be done at once and that it can give tax breaks and invest in quality public services at the same time. The Government cannot do both if it is going to have a sustainable economic policy.

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